$3.3B in US 2Q25 hotel deals

NATIONAL REPORT – The LW Hospitality Advisors Q2 2025 Major U.S. Hotel Sales Survey reveals that compared to the first quarter the number of trades increased approximately 7% while dollar volume grew roughly 17%. Average deal size increased nearly 9% and sale price per room rose roughly 12%.

There were 89 single asset sale transactions over $10 million in 2Q25 worth nearly $3.3 billion and included approximately 14,500 hotel rooms with an average deal size of $36.7 million and an average sale price per room of $225,000.

Compared to year ago data, asset transaction in 2Q25 dipped slight with just one less deal but with $700 million less in value and $54,000 less in price per key.

Generally, trades that are occurring are smaller in size and being consummated with financing through debt funds with less restrictive requirements than large banks, and regional banks with more favorable spreads. However, so far this year there have been several large hotel sale transactions of “trophy” properties and/or institutional grade assets that can be acquired for less than replacement cost.

A dramatic representation of this phenomenon is Blackstone’s recently announced $200 million acquisition of the newly opened 785-room Sunseeker Resort Charlotte Harbor, Florida. This purchase price is roughly 25% of the reported $720 million cost to develop the asset.

Newsworthy Q2 2025 observations include:

• Twenty-four trades, or roughly 24% of the national Q2 2025 total, occurred in California and Florida. These transactions total more than $583 million in investment activity, or 18% of the national Q2 2025 aggregate.
• Seven major hotel sales in Colorado represented roughly $397 million of investment activity, or 12% of the national Q2 2025 aggregate.
• Seven major hotel sale transactions in Texas represented roughly $222 million in investment activity, or 7% of the national Q2 2025 aggregate.
• Seven major hotel sale transactions in Tennessee represented roughly $213 million of investment activity, or 7% of the national Q2 2025 aggregate.

Individual deal highlight include:

• Trinity Investments sold the JW Marriott Phoenix Desert Ridge Resort & Spa, a 950-room hotel and the largest resort in Phoenix, Arizona, for $865 million or $910,000 per key to Ryman Hospitality Properties. Trinity Investments acquired the asset in 2019 for $602 million and completed a nearly $100 million renovation project for the property which included adding a water park complex.
• Through a $400 million bond offering, The Stanley Hotel in Estes Park, Colordao, a historic 196-key asset, was acquired for just over $163 million, or $839,000 per unit by The Stanley Partnership for Art Culture and Education, a public-private partnership that includes Colorado Educational and Cultural Facilities Authority and private investors. The financing will allow the hotel, which is famous for serving as the inspiration for Stephen King’s novel The Shining, to expand the lodging buildings to add 65 keys and construct a new 65,000 square foot event center.
• Hawkins Way Capital acquired from Apollo Global Management the former 492-room Holiday Inn Manhattan-Financial District in New York City for $154.5 million or $314,000 per unit. The property, which paused traditional hotel operations during the COVID-19 pandemic and most recently served as temporary migrant shelter, is slated to be converted to a 650-bed student housing facility.
• High Street Real Estate Partners sold to Elevated Returns the 254-unit Viewline Resort Snowmass in Colorado, an Autograph Collection Hotel, the 151-room Wildwood Snowmass Lodge and the 8,000 square foot Snowmass Conference Center in Snowmass for $144 million or roughly $356,000 per key.
• Xenia Hotels & Resorts sold the 545-room Fairmont Dallas to Sixth Street Partners for $111 million, or approximately $203,670 per key.
• The recent sale of the 1950’s era 56-room Silver Sands Beach Resort in Key Biscayne, Florida, for $205 million ($3.7 million per unit) reportedly represents a record land sale price for the area and is therefore not included in the LWHA survey. The improvements are slated to be razed to allow for the development of a 56-residence ultra-luxury boutique branded condominium community.

Debt continues to be widely available for the lodging sector as evidenced by numerous recently announced acquisition financings, property refinancings, and new construction financing. Some of the bigger deals include:

• Prime Finance provided InterGroup Corp., and its subsidiary Portsmouth Square, a $67 million loan to refinance the 544-room Hilton San Francisco Financial District in San Francisco.
• Elliott Investment Management and the Chartres Lodging Group obtained a $300 million from Goldman Sachs Bank USA and JPMorgan Chase Bank to refinance the 1,841-room Sheraton Dallas Hotel in Dallas.
• BLDG Management and Metrovest Equities obtained from a joint venture comprised of Smith Hill Capital and Bain Capital. a $235 million loan to refinance the 158-key Gurney’s Montauk Resort & Seawater Spa in Montauk, New York.
• Chartwell Hospitality secured $100 million of permanent financing (five-year, interest-only CMBS) from Citigroup for the newly completed 362-room Marriott New York JFK Airport Hotel in Jamaica, New York.
• Driftwood Capital closed a $1.2 billion recapitalization for an 18-property hotel (4,203 keys) portfolio consolidation deal with institutional support from Wells Fargo and ACORE Capital.
• Witkoff Group and Access Real Estate obtained $100 million from Apollo Global Management to refinance the 150-room Belgrove Resort & Spa and the Dutchman’s Pipe Golf Club both in West Palm Beach, Florida.
• Blackstone Real Estate Debt Strategies led a consortium that provided a joint venture between Gencom and Fortune International Group, $300 million of refinancing proceeds in connection with the 420-key Ritz-Carlton Key Biscayne, Miami and the nearby Grand Bay Club located in Key Biscayne, Florida.
• KSL Capital Partners arranged a $270 million refinancing (two-year loan with three 1-year extension options) with Morgan Stanley for the historic 138-year-old, 388-room Grand Hotel and the 84-room Bicycle Street Inn on Mackinac Island, Michigan.
• Mirae Asset Global Investments secured a $136 million refinancing package from New York Life for the 540-unit Fairmont Orchid – Hawaii in Waimea, Hawaii.
• Starwood Capital Group refinanced two adjacent hotels, namely the 418-key Westin San Francisco Airport and 298-key Aloft San Francisco Airport with a $92.2 million loan that has a two-year initial term and three one-year extension options.
• Magna Hospitality Group obtained from KSL Capital Partners a $150 million loan to refinance the Hyatt Place New York City/Times Square in New York City.
• Mack Real Estate Group secured a $235 million CMBS loan from Wells Fargo Bank for a portfolio of seven Manhattan select-service hotels with 1,087 keys in New York City.
• Wells Fargo Bank and Goldman Sachs Bank originated a $340 million CMBS loan to Atrium Hospitality to refinance the 1,307-room Waikiki Beach Marriott Resort & Spa in Honolulu, Hawaii. According to bond rating firm KBRA the floating-rate loan has a two-year initial term with three 12-month extension options and requires monthly interest-only payments.
• Blackstone refinanced the 794-room Grand Wailea, A Waldorf Astoria Resort, with a floating rate interest only $1 billion Single Asset Single Borrower (SASB) CMBS loan from Citi and Deutsche Bank that has an initial two-year term with three one-year extension options. Future mezzanine financing is permittable up to $100 million and the loan is also assumable, which allows Blackstone to continue to explore a sale of the property.
• Tyko Capital provided a joint venture between Terra Group and Turnberry with a $392 million construction loan to develop a 17-story, 800-room Grand Hyatt hotel next to the Miami Beach Convention Center in Miami Beach, Florida.
• Tidal Real Estate Partners obtained a $230 million construction loan from Mavik Capital and Lionheart Strategic Management for the development of a hospitality mixed-use development that is slated to include a 312-key Marriott Hotel in Nashville. The capital stack includes a $180 million senior loan from Lionheart and a $50 million preferred equity loan from Mavik.